For a better experience, Read this story in our App
TO ENJOY ADDITIONAL BENEFITS
Connect With Us
Get BusinessLine apps on
The tech start-up sector, recovering from two years of hiring slowdown, has added 85,000 professionals in 2024 so far, a substantial improvement over 40,000 additions in 2023. | Photo Credit: z_wei
India’s tech start-up ecosystem is witnessing a cautious recovery in hiring following mass layoffs in a difficult business environment.
While this may only be the green shoots, the active demand for hiring tech talent with skilled professionals in areas such as AI/ML, data science, cloud computing, and cybersecurity is on the uptick.
The tech start-up sector, recovering from two years of hiring slowdown, has added 85,000 professionals in 2024 so far, a substantial improvement over 40,000 additions in 2023.
According to Anil Ethanur, Co-founder of Xpheno, a specialist staffing company, “The tech start-ups cohort has added a little over 80,000 professionals as net additions so far in 2024. With a couple of weeks more in the year, the trajectory is set to close at 85,000 net additions for the 12-month period ending December 2024.”
He said the period of funding winter, high burn rates and macroeconomic challenges led to significant layoffs, as start-ups streamlined operations.
After a strong run in 2021, when the cohort added nearly 150K professionals, the numbers dropped to 100K in 2022. Hiring action slowed down further to a crawl in 2023 with 40K net additions, according to data from Xpheno.
Start-ups are increasingly prioritising mid-level professionals and fresh graduates to strike a balance between cost efficiency and skill needs, while senior-level hiring remains selective.
Neeti Sharma, CEO of TeamLease Digital, highlights the trend: “Freshers currently make up a significant portion of new roles, especially in cost-sensitive sectors like fintech, where startups tap into campus placements for adaptable and affordable talent. Entry-level hiring is a strategic move to balance budgets and build a future-ready workforce.”
At the same time, mid-level professionals with 3-5 years of experience remain highly sought after, particularly in roles involving AI, cloud computing and data science. Anil Ethanur, Co-founder of Xpheno, adds: “Hiring action has been largely attrition-driven, with mid and mid-senior technical roles dominating recruitment. Expansion hiring for freshers and senior leaders has been limited, as startups continue to operate cautiously.”
Despite the hiring uptick, salary hikes remain modest at 8-12 per cent, with mid-level professionals receiving the highest increments of 15-17 per cent. Neeti Sharma, CEO of TeamLease Digital, says: “Start-ups are offering equity incentives to leadership teams as cash-based hikes remain moderate. Salaries for tech professionals currently average ₹25.6 lakh, with leadership roles ranging up to ₹51.5 lakh.”
Overall, start-ups have hired 12.42 lakh professionals in 2023 and 16.6 lakh professionals till October 2024, according to data from Teamlease Digital
Published on December 17, 2024
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.